Behind the UK government insolvency reforms

The Corporate Governance and Insolvency Bill has been introduced into the United Kingdom Parliament and is due for debate on 3 June.  This article in its Part A examines details of the Bill; in Part B reviews the Bill’s April 2020 impact assessment as to how it is expected to assist; and in Part C […]

Executing a search warrant for the property of an insolvent company

Attempts to execute a liquidator’s s 530C search warrant for a large prime mover vehicle led to threats, a ‘long chain’, a baseball bat and a dark sedan. Unfortunately, the vehicle identification details in the warrant were incorrect.  The attempt to execute the warrant The Judge set out the chain of events, of which this […]

Re-naming rights of the bankruptcy regulator

“When I use a word, it means just what I choose it to mean—neither more nor less”.[1] Bankruptcy law allows the regulator to rename unclear or inconvenient legal words in the Act, or to add requirements not required by the law. The ‘declaration of intention to present a debtor’s petition’ under s 54A of the […]

Australian personal insolvencies falling in number

The number of personal insolvencies in Australia have been falling since the start of the corona crisis, which some might find odd. But it is consistent with past trends that show a lag between a financial downturn and its impact on the number of insolvencies. There is also the 6 month stay, in effect, on […]

Important rules in reviewing registrars’ sequestration orders

Chief Justice James Allsop of the Federal Court of Australia has written, both in his judgments and extra-judicially,[1] of the fundamental importance of personal bankruptcy law in our legal system, and as to the ‘human consequences that attend the change of status and the change of lives of people who are made bankrupt’.[2] That importance […]

Preferences paid by company under a DOCA – based upon a reading of the section

A company under a 2013 deed of company arrangement made payments to the Deputy Commissioner of Taxation. The deed was terminated in 2017 and the company went into liquidation. The liquidators successfully recovered the payments from the DCT as unfair preferences. Justice Middleton of the Federal Court of Australia applied statutory interpretation principles in coming […]

Who should pay for the costs of the administration of an insolvency?

A debtor in Australia pays no fee to have themselves made voluntarily bankrupt. If that does not seem odd, then it should be further explained that we are one of the only jurisdictions to impose no fee. But the ‘fee’ to wind up the debtor’s company can be a few thousand dollars. Individual debtors In […]

Crime and insolvency, Australian style

There is not much correlation between crime and insolvency, in my researches, certainly in comparison with crime in the world of solvent individuals and companies. But when a bankruptcy or liquidation does reveal criminal conduct, Australian law’s reporting requirements are variable. Australian Criminal Investigations Commission Despite my researches, the Australian Criminal Investigations Commission has expressed […]